Shanghai rose 0.53 per cent, or 12.47 points, to 2,358.98, extending strong gains from the previous session as confidence in the mainland economy grows stronger.

However, there was a certain amount of caution as the corporate earning season begins this week in Japan.

Eyes are on the US as the Federal Reserve begins a two-day policy meeting on Tuesday, followed by the release on Friday of closely watched jobs data, with investors hoping for new clues on the state of the economy.

Friday will also see the release of Chinese manufacturing data, which is likely to add to recent evidence that the world's number two economy has shaken off a malaise that weighed on growth for most of last year.

Japanese shares climbed while the yen remained under pressure as the euro and US dollar continue to pick up against the unit.

In afternoon Tokyo trade, the US dollar bought Y90.62 against Y90.82 in New York on Monday afternoon, while the euro fetched Y121.73, compared with Y122.2. The single currency was at $US1.3431, from $US1.3454.

Despite a better than expected rise in orders for durable goods - a key pointer to consumer confidence - the lead from Wall Street was anaemic as profit-takers moved in following a strong finish last week.

The Dow eased 0.1 per cent and the S&P 500 fell 0.18 per cent after the two indexes on Friday hit levels not seen since late 2007.

However, the Nasdaq rose 0.15 per cent, boosted by a slight rebound in Apple.

Mumbai slipped 0.56 per cent, or 112.45 points, to 19,990.9 despite the Reserve Bank of India cutting interest rates for the first time in nine months and reducing the amount of cash banks must keep in reserve.

Investors had already factored in the widely expected 0.25 percentage point cut, and uncertainty about future rate reductions weighed on stocks, analysts said.

Oil was up in Asia, with New York's main contract, light sweet crude for delivery in March, gaining 33 cents to $US96.77 a barrel in the afternoon and Brent North Sea crude for March up 12 cents to $US113.60.

Gold was at $US1,661.10 at 1110 GMT (2210 AEDT) compared with $US1,655.09 late on Monday.

In other markets:

- Taipei rose 1.13 per cent, or 87.33 points, to 7,802.00.

TSMC rose 1.71 per cent to Tw$101.0 while HTC was 1.43 per cent higher at Tw$284.5.

- Manila rose 0.68 per cent, or 42.31 points, to a record high 6,234.73.